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Users willingness to pay and charge for the use and degradation of water resources

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Author(s):
Giovanni Margarido Righetto
Total Authors: 1
Document type: Master's Dissertation
Press: São Carlos.
Institution: Universidade de São Paulo (USP). Escola de Engenharia de São Carlos (EESC/SBD)
Defense date:
Examining board members:
Marcelo Pereira de Souza; Fazal Hussain Chaudhry; Julio Manuel Pires
Advisor: Marcelo Pereira de Souza
Abstract

This study analyses the introduction of a method for levied on the use of water in which economic and environmental aspect, are considered as basic variables in the determination of the amount to be charged. It presents various ways for measuring the willingness of the users to pay for water in order to compare it to the the charges levied. The willingness to pay is an important mechanism for obtaining information about the economic impact of the policy of levying taxes. The results show that, depending upon the saturation degree of the water bodies, some sectors would have difficulty in paying the charges even when they show positive willingness to pay. It shows the importance of a management policy that considers the duality site-type in the decision-making process as regards the implantation of economic activities. Elasticity in demand prices is another important factor in this process. Depending upon the conditions of elasticity, a production unit would be able to honor its tax liabilities despit its delicate financial situation. (AU)